Turbotax basis Issue for State and QBI

Forum|Forum|3 years ago
March 21, 2023
1 reply
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I'm attaching the asset entry worksheet. My issue is TT is creating strange cost basis for NJ state and QBI which I have zero idea how it's calculated nor where the $50,003 is coming from? I actually deleted the form and entered a totally new asset even which fixes the depreciation for this year but, it will be an issue again next year. When I originally did my taxes this year, there was a depreciation difference for NJ and Federal and I realized it was because TT had the basis for NJ at only $50,003 which then deleting and reentering corrected the current year NJ depreciation but, as you see it will be an issue again next year.

I never take any special depreciation and attempt to have all my assets follow the state depreciation rules so I don't have timing differences.

I can not find any forms in forms mode that shows me the state basis that TT is calculating.

Any help, see attached asset entered.

Thanks.

Turbotax-asset-entry-issue.pdf

TurboTax Home & Biz Windows

Carl11_2

Employee

I'm sure you're aware I"m clueless when it comes to state taxes. But what I did was take line 4 in the amount of 116670 and from that subtracted line line 8 amount of 66667 and that resulted in your line 52 amount of 50,003. To me, that would be the depreciable basis, and I note the line is labeled "Depreciable basis".

maglibAuthor

Employee

@Carl11_2 I must have been asleep... It came over that way. The asset the year before was 183,337 less land brings it to 116,670 less prior depreciation from the depreciation schedule of $12,552 and state matched federal. So it's subtracting the land twice then for NJ??? It came over wrong from last year too but, depreciation was the same for both fed and NJ.

So I did fix it by doing the asset entry sheet over again this time using numbers from 2021 return.
So it seems TT did though carry it over to 2022 with the land backed out twice.

I only noticed it as there was a depreciation adjustment in NJ and the depreciation schedules should have matched.

I'm glad you noticed the calculation difference. Have you heard any others where the carryfwd was erroneous?

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TT-PY-Asset-entry.pdf

Carl11_2

Employee

I'm glad you noticed the calculation difference. Have you heard any others where the carryfwd was erroneous?

Not really. But then I don't pay that much attention to state tax issues. The only reason I looked at yours was because you attached the worksheet. From the worksheet itself I didn't see anything to call erroneous. But I figured bringing lines 4 & 8 to your attention would probably help.